Political uncertainty is seen as one of the biggest drags on megadeals despite the performance of major stock markets throughout this year. Corporates are taking a cautious approach due to uncertainty regarding U.S President Donald Trump‘s promises to overhaul the tax system and financial deregulation.
Nonetheless, “the low deal count combined with stable value has pushed the global average deal value to $356 million – 5.8 percent higher than the year-to-date 2016 figure of $336 million,” Monday’s Mergermarket report said.
Overall, the market seems to have also been impacted by regulation fears, mainly from China. “Increased regulation, in China, Europe, and the U.S. have left sellers wary of pursing Chinese bidders due to concerns over whether deals will be able to close, despite higher premiums often being available,” the report said.
